Playing the long game: A VC’s perspective
“If you look closely, most overnight successes took a long time”, said the business maestro, Steve Jobs. The idea of making it tests the virtue of patience, which can be torturous for entrepreneurs who want to believe they are so close. Playing the long game doesn’t come very naturally to go-getters and the ambitious, keeping hope a little elusive to them. This comes from our personal experience of being on both sides of the table. Bringing our observations as entrepreneurs into our stint as a micro-VC firm, we have noticed that the game is not rigged, it simply must be waited out.
Here is a VCs perspective on how playing it slow can and being patient, can bring real benefits to your endeavours.
Steady wins the race
As invigorating as it may be to evaluate cutting-edge technology and work with incredibly smart people on innovative ideas, an inescapable reality dawns, it is hard to build them. As an investor, one must be a critical thinker more than anything else which means, there are pros and cons lists running through their minds at all times. We have fortunately come in contact with some of the most competent founders with inspiring spirit and commitment. However, it is not unusual for funders to meet passionate entrepreneurs whose ideas remain unscalable. The role of a venture capitalist is to see how entrepreneurs mirror their own ethics to be able to grow together, which is a time-consuming process. It also requires a streak of resourcefulness and understanding of the value proposition of the start-up they are investing in.
Here are several consuming steps VCs take into consideration before jumping in.
● A detailed investment thesis of the target sectors
● Broaden networks for themselves and their start-up partners
● Devise personal motivations from the ground up with the relevant trends
● Figure out accelerators to build upon the value proposition
Towards the target
The journey to success involves several modifications to the main idea and navigation within interpersonal relations across the industry. An annual, monthly, or even quarterly analysis and status checks may reveal something that wasn’t expected but showed up at the time of execution. A pivot in the business, addresses the short-term needs and the long-term strategy which might include several sacrifices, especially in unexpected times. If one stays attentive, failure can turn into success a decade down the lane. The search for the ‘Aha moment’ is your guiding light for the path forward.
While there is no secret set of instructions, the implication of driving a sustained vision prepares you early and often. The goalposts in a high-risk-high reward world of venture capital are ever-shifting. Start solving big challenges with small steps and find your satisfaction in roads best traveled before you run into unknown destinations. Some quick wins with a calculated approach can be truly transformative for your confidence.
While a sense of urgency is the virtue of being a creator, the accelerated evolution process of a start-up may challenge you to cut corners to win faster. This may often cause you to fail and affect your overall well-being. That’s why it’s so important while building a tech mogul, both investors and entrepreneurs play a deliberate long game.
